Determining the break-even point and preparing a contribution margin income statement Inman Manufacturing Company makes a product that it sells for $60 per unit. The company incurs variable manufacturing costs of $24 per unit. Variable selling expenses are $12 per unit, annual fixed manufacturing costs are $189,000, and fixed selling and administrative costs are $141,000 per year.
Required
Determine the break-even point in units and dollars using the following approaches.
a.Equation method.
b. Contribution margin per unit.
c.Contribution margin ratio.
d.Confirm your results by preparing a contribution margin income statement for the breakeven sales volume.
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